Method and system for processing financial instrument deposits physically remote from a financial institution

ABSTRACT

A system that includes computer hardware, computer software, apparatus, and methodology that enables individuals, businesses, and all types of organizations (both for profit and non-profit) to capture and securely transmit check images (including, but not limited to, personal checks, business checks, travelers checks, money orders, merchant coupons, food coupons, line of credit checks, etc.), deposit information, and other information from capture sites that preprocess financial instruments and generate data from the original instruments, for the purpose of having those checks credited to the depositing individual&#39;s or organization&#39;s bank account(s) and having the check images (and/or physical checks) entered into the bank check clearing channels for ultimate delivery to the maker bank for payment out of the maker&#39;s account.

RELATED APPLICATIONS

This application is a continuation-in-part of U.S. patent applicationSer. No. 09/560,779, filed Apr. 28, 2000, for “Method and System forProcessing Financial Instrument Deposits Physically Remote from aFinancial Institution.”

BACKGROUND OF THE INVENTION

1. The Field of the Invention

The present invention relates to physical financial instrumentprocessing. More particularly, the present invention relates to a methodand system for remotely processing checks through electronic interactionbetween the physical location of the instrument and a financialinstitution.

2. Related Technology

The act of depositing or otherwise converting a financial instrumentsuch as a check, draft, or other instrument has generally required thephysical presentment of the instrument by the bearer to a financialinstitution such as a bank, credit union, or other institutionauthorized to accept and process monetary instruments. Indeed, thedepositing and clearing of checks has heretofore involved individuals ororganizations physically taking their deposit, such as in the form of acheck, to financial institutions or trusted remote institutionalbranches, otherwise known as the bank of first deposit, where thedeposit may be accepted, and credited to the bank customer's account, ofcourse, subject to the check “clearing” with the maker financialinstitution.

Financial institutions have developed methods for reducing the amount ofpaper flow associated with checks within their organizations, however,their target has not been to reduce processing costs, improve thetimeliness of the money collection from other financial institutions,and reduce costs associated with handling, storing and returning paperchecks to the maker. Therefore, it would be an advancement to provide anew system centered on electronic information that does not require theuse of paper items for any purpose.

Therefore, it would be advantageous to provide an electronic processingsystem and method that could provide a bearer of a check the convenienceto “deposit” a check at a facility, such as a home or office, that isnot a traditional bank or bank branch facility.

It would also be advantageous to provide a method and system forallowing the remote depositing and processing a check that does notrequire the physical routing of the actual check in order to accomplishthe various post-deposit processing of a check. It would yet be afurther advantage to provide a method and system for improving thecollection time involved with the finds represented by the check (i.e.,reduce credit “float”).

It would be a benefit to provide a method and system for reducingexpenses associated with the transportation costs involved in sendingthe checks from the bank of first deposit to the maker financialinstitution.

It would also be a benefit to provide a method and system for reducingthe check storage expenses incurred by the bank of first deposit.

It would be a further benefit to enable the bank of first deposit toreduce the staffing, facilities (i.e., physical buildings), andequipment required to accept and process physical checks.

SUMMARY AND OBJECTS OF THE INVENTION

The present invention has been designed to reduce the issues associatedwith the physical handling of paper items by financial institutions andto improve the collections of associated funds by processing electronicimages of checks as opposed to the slower method of sending paper checksthrough the traditional check clearing routes. Not withstanding thepremise for the inventive processes to use electronic images of items tofacilitate processing and clearing of items, it would also be desirablefor the present invention to accommodate the current use of paper itemsand all other commonly accepted methods for clearing checks until suchtime as the use of electronic images becomes a common accepted practicefor clearing checks.

This new process involves inventive computer-based software that can beused at financial institution locations and locations remote fromfinancial institution offices for capturing deposits, together hereinreferred to as remote locations. The remote capture system can be usedby individuals and businesses (including the financial institution) tocapture deposit information and images of the monetary items, such aschecks, required for depositing the checks into their deposit accountsat the financial institution. Once this information is captured andvalidated at the remote site, it is transferred to the financialinstitution over telecommunications lines (leased lines, switched lines,Internet, etc.) to a receiving computer at the financial institution.The financial institution computer verifies the information received,stores the image of the items, and passes back to the remote sitecomputer information that is used by the remote site computer toendorse, cancel, and item number, and otherwise mark, void, and identifythe check. Another image of the check is then created at the remotelocation showing the endorsements information. This image is then sentto the central site of the financial institution for storage and to beused for research and re-depositing of the check if this becomesnecessary. The depositor retains the deposit slips and monetary item(s)at the remote site.

As an alternative to the interactive process of passing voiding,endorsing, unique number information back and forth between the centralsite and the remote site, it will be possible (based on parameters setin the inventive software) to do most of the decision-making on theremote site processor before transmitting the check information to thecentral site. This can be done by pre-loading the endorsement, voiding,and item numbering information on the remote site processor and/orupdating on a regular basis. This allows for checks to be endorsed,voided and item numbered and the image(s) associated with a checkdeposit to be created and passed to the central site without the needfor interactive validation of data between the remote and central sites.

In addition to deposits, decisions based on remote site information, thepresent invention also allows deposits of any number, combination, anddollar amounts of deposit, and checks based upon decisions maderegarding the customer by information stored at the central site. Thisinformation can be loaded onto the central site and communicated to theremote processor as part of the interactive exchange of data during theprocess of validating the deposit. Additionally, this information whilebeing pre-loaded on the remote processor can also be updated on aregular basis.

Once complete deposit data is received by the central site processor atthe bank of first deposit's central site, it is passed to the centralsite's check processing, deposit, and cash management, etc., systems forprocessing. As an alternative, if the remote site or central site isbeing used as a collection center for deposits from other institutions,the deposit information can be passed to the other institutions checkprocessing, deposit, and cash management, etc., systems for processing.The image of the checks can be used to either print the customerstatements (for items drawn on the bank of first deposit or routedthrough the normal check clearing paths (i.e. directly to clearing andcorrespondent banks or through the FRB electronic clearing process). Ifthe maker or maker bank(s) require physical checks for their internalpurposes, a duplicate check is printed by either the bank of firstdeposit's central site, or the maker bank or by the maker banks FRB, orby print centers arranged for by remote site or overall service provideror by third parties for the purpose of printing the checks.

Once received by the maker bank, the check image or duplicate printedcheck is processed by the maker bank through their computer systems andincluded as per their policies in their customer statements. Checksreturned to the depositor for any reason will take the reverse path backto the depositor. Any re-depositing of items by the original depositoris done using the either the printed duplicate paper item (if there isone) or the original endorsed image created and stored at the bank offirst deposit's central site.

All transmission of data preferably undergoes digital signatureverification and certification and data encryption to ensure privacy andconfidentiality of the data being transmitted. In addition, the checkimages will be stored on a document storage database at the remote siteor bank of first deposit as well as Internet enabled and accessibledatabase(s). The information on these database(s) will be available tothe depositor and research personnel at the bank of first deposit'scentral site under security control through remote access such asInternet access.

The system includes computer hardware, computer software, apparatus, andmethodology that enables individuals, businesses, and all types oforganizations (both for profit and non-profit) to capture and securelytransmit check images (including, but not limited to, personal checks,business checks, travelers checks, money orders, merchant coupons, foodcoupons, line of credit checks, etc.), deposit information, and otherinformation from remote locations (i.e., locations that could includethe financial institution's remote locations, other financialinstitution's locations, businesses, private residences, etc.), for thepurpose of having those checks credited to the depositing individual'sor organization's bank account(s) and having the check images (and/orphysical checks) entered into the bank check clearing channels forultimate delivery to the maker bank for payment out of the maker'saccount.

It should be appreciated that check images can be created by a varietyof systems using various methods for capture and storage of images.Therefore, another embodiment of the invention provides for images beingreceived from other systems, rather than captured by a dedicated remoteimaging system, for the express purpose of using the inventive processesfor expediting the clearing and collection of funds associated withthose images. These alternative systems include lock box systems(designed to process payment coupons and capture the associated check(s)in payment for goods or services) and MICR image capture systems (as ina commercial bank capturing their physical deposits and using theinventive process to expedite collection of the checks based onprocessing the image instead of the physical check.)

In yet another embodiment of the invention, financial institutionswishing to use the invention for clearing of checks can send theirphysical checks to the institution using the invention. The institutionusing the herein-defined process may then capture the checks usingconventional check capture and imaging system(s) and pass the image andMICR data to inventive process for the purpose of clearing the checks.In the present embodiments where check images are re-used as input fromexisting systems such as lock box or MICR, the check images from theseother image capture system(s) are transmitted over telecommunicationslines (leased lines, switched lines, Internet, etc.), or if the capturesystem is local to the central site processor, the image data is loadeddirectly to the central site computer using either telecommunicationslines or local wiring designated for this purpose, and then to areceiving computer at the receiving financial institution. The receivingfinancial institution computer verifies the information received andedits the check images for completeness, stores the image of the items,and passes back to the sending computer information verifying successfulreceipt of the image data. If the images are not complete or thetransmission was not completed correctly, the receiving central siteprocessor notifies the sending computer and the data is corrected on thesending computer prior to re-transmission.

As an alternative, a representative at the receiving end can call arepresentative at the sending end and notify them of non-receipt orbad-receipt of data and arrange for data correction and/orretransmission. In these embodiments, all transmission of datapreferably undergoes digital signature verification and certificationand data encryption to ensure privacy and confidentiality of the databeing transmitted. In addition, the check images will be stored on adocument storage database at the remote site or bank of first deposit aswell as Internet enabled and accessible database(s). The information onthese database(s) will be available to the depositor and researchpersonnel at the bank of first deposit's central site under securitycontrol through remote access such as Internet access.

These and other objects and features of the present invention willbecome more fully apparent from the following description and appendedclaims, or may be learned by the practice of the invention as set forthhereinafter.

BRIEF DESCRIPTION OF THE DRAWINGS

A more extensive description of the present invention, including theabove-recited features, advantages, and objects, will be rendered withreference to the specific embodiments that are illustrated in theappended drawings. Because these drawings depict only exemplaryembodiments, the drawings should not be construed as imposing anylimitation on the present invention's scope. As such, the presentinvention will be described and explained with additional specificityand detail through use of the accompanying drawings in which:

FIG. 1 illustrates an overview of a process of capturing and processingdeposits from financial institutions and their branches which can beadapted to incorporate some of the features of the present invention;

FIG. 2 illustrates an overview of remotely capturing and processingdeposits remote from a financial branch or bank, in accordance with apreferred embodiment of the present invention;

FIG. 3 is a more detailed block diagram showing the capturing andprocessing at the remote site or point of check presentment, inaccordance with a preferred embodiment of the present invention;

FIG. 4 illustrates central site processing of image data as captured atthe remote site, in accordance with a preferred embodiment of thepresent invention;

FIG. 5 illustrates processing at the maker or payor institution site, inaccordance with a preferred embodiment of the present invention;

FIG. 6 illustrates a processing diagram of the interaction betweenentities of the present invention;

FIG. 7 is a process flowchart of check processing of the presentinvention;

FIG. 8 illustrates an overview of remotely capturing images throughcurrent art lock box and MICR image capture systems and processing themthrough the invention, in accordance with a preferred embodiment of thepresent invention;

FIG. 9 illustrates central site processing of image data as capturedthrough current art lock box and MICR image capture systems, andclearing them through the invention, in accordance with a preferredembodiment of the present invention; and

FIG. 10 is a process flowchart of check processing of a preferredembodiment of the present invention and illustrated in FIG. 8 and FIG.9.

DETAILED DESCRIPTION OF THE PREFERRED EMBODIMENTS

The invention is described below with reference to drawings. Thesedrawings illustrate certain details of specific embodiments thatimplement the systems and methods of the present invention. However,describing the invention with drawings should not be construed asimposing, on the invention, any limitations that may be present in thedrawings. The present invention contemplates both methods and systemsfor remotely accepting a check for deposit and electronically processingthe deposit without physically routing the physical paper copy of thecheck. The embodiments of the present invention may comprise a specialpurpose or general purpose computer including various computer hardware,the execution unit portion of which may also be known herein as a“processor.”

Embodiments within the scope of the present invention also includecomputer-readable media for carrying or having computer-executableinstructions or data structures stored thereon and also known assoftware. Such computer-readable media can be any available media whichcan be accessed by a general purpose or special purpose computer. By wayof example, and not limitation, such computer-readable media cancomprise RAM, ROM, EPROM, EEPROM, CD-ROM or other optical disk storage,magnetic disk storage or other magnetic storage devices, or any othermedium which can be used to carry or store desired program code means inthe form of computer-executable instructions or data structures andwhich can be accessed by a general purpose or special purpose computer.When information is transferred or provided over a network or anothercommunications connection (either hardwired, wireless, or a combinationof hardwired or wireless) to a computer, the computer properly views theconnection as a computer-readable medium. Thus, any such a connection isproperly termed a computer-readable medium. Combinations of the aboveshould also be included within the scope of computer-readable media.Computer-executable instructions comprise, for example, instructions anddata which cause a general purpose computer, special purpose computer,or special purpose processing device to perform a certain function orgroup of functions. Computer-executable instructions may also beproperly termed “software” as known by those of skill in the art.

Although not required, the invention will be described in the generalcontext of computer-executable instructions, such as program modules,being executed by computers in network environments. Generally, programmodules include routines, programs, objects, components, datastructures, etc. that perform particular tasks or implement particularabstract data types. Computer-executable instructions, associated datastructures, and program modules represent examples of the program codemeans for executing steps of the methods disclosed herein. Theparticular sequence of such executable instructions or associated datastructures represent examples of corresponding acts for implementing thefunctions described in such steps.

Those skilled in the art will appreciate that the invention may bepracticed in network computing environments with many types of computersystem configurations, including personal computers, hand-held devices,multi-processor systems, microprocessor-based or programmable consumerelectronics, network PCs, minicomputers, mainframe computers, and thelike. The invention may also be practiced in distributed computingenvironments where tasks are performed by local and remote processingdevices that are linked (either by hardwired links, wireless links, orby a combination of hardwired or wireless links) through acommunications network. In a distributed computing environment, programmodules may be located in both local and remote memory storage devices.

An exemplary system for implementing the portions of the inventionincludes a general purpose computing device in the form of aconventional computer, including a processing unit, a system memory, anda system bus that couples various system components including the systemmemory to the processing unit. The system memory may include read onlymemory (ROM) and random access memory (RAM). The computer may alsoinclude a magnetic hard disk drive for reading from and writing to amagnetic hard disk, a magnetic disk drive for reading from or writing toa removable magnetic disk, and an optical disk drive for reading from orwriting to removable optical disk such as a CD-ROM or other opticalmedia. The drives and their associated computer-readable media providenonvolatile storage of computer-executable instructions, datastructures, program modules and other data for the computer.

Program code or software means comprising one or more program modulesmay be stored on the hard disk, magnetic disk, optical disk, ROM or RAM,including an operating system, one or more application or softwareprograms, other program modules, and program data.

The computer may operate in a networked environment using logicalconnections to one or more remote computers having processors. Logicalconnections may include a local area network (LAN) and a wide areanetwork (WAN) that are presented here by way of example and notlimitation. Such networking environments are commonplace in office-wideor enterprise-wide computer networks, intranets and the Internet.

It should also be pointed out that while the term “check” may begenerically used herein, it is contemplated by the inventors that otherfinancial instruments are also contemplated within this meaning andtherefore, the use of the term “check” is assumed to have the broadermeaning, both in the specification and the claims.

Additionally, the term “bank of first deposit” means the financialinstitution sponsoring the remote site and which owns or employs acentral site for processing financial transactions.

Referring to FIG. 1, a bank of first deposit 101 receives a check fromthe bearer to begin processing the instrument. Bank of first deposit 101actually forwards, in step 113, the physical check(s) to a central site102 for additional physical processing of the actual check. The physicalcheck is processed at central site 102 using a reader/sorter (notseparately shown but included in 102) to acquire information such as theinformation stored on the Magnetic Ink Character Recognition (MICR)line. This information includes the maker bank number, the accountnumber, a check serial number, etc. The information from the check isthen sent to an in-house computer system (included in 102) for postingin steps 114, 115 to the appropriate bearer account(s) 103, 104 in thebank of first deposit 101. If the check is an on us item (i.e. an itemthat is drawn on the bank that is processing it), the check is retainedin a step 117 at storage 105 at bank of first deposit 101, otherwise thecheck is sent in steps 116 and 119 or, alternatively in step 118 into amaker bank 108 for collection of funds. The check(s) are either sentphysically in step 118 directly to maker bank 108 or routed in steps 116and 119 through a Federal Reserve Banks (FRB) 106 and 107 check clearingprocesses to a maker bank 108.

The path taken by the check is determined by the working agreement thatbank of first deposit 101 has with maker bank 108. If maker bank 108 isa member of the local clearing-house association (thereby being aclearing bank), the checks can be exchanged directly with maker bank108. If the maker bank 108 is a correspondent bank (a bank that hasagreed to exchange checks directly with the bank of first deposit) thechecks can be sent directly to maker bank 108. All other checks areforwarded in steps 116 and 119 to the FRBS, 106 and 107 for exchangewith maker bank 108. If a check is not paid by maker bank 108 for anyreason (i.e. it is a forgery, there are not sufficient funds in themakers account to cover the amount of the check, etc.) the check isreturned to the depositor using the reverse path. Once the check isreceived by maker bank 108, the check is processed in step 121 throughthe maker bank's check capture system 109. Information from the check isthen sent in steps 122 and 123 to the maker bank's accounting systems110 and 111 and the checks are either stored in step 124 at the makerbank's check storage 112, or sent directly to the maker with their checkstatement.

FIG. 2 depicts a high-level processing diagram of the various entitiesinvolved in the overall financial processing of the present invention,in accordance with the preferred embodiment. The present inventioncomprises three primary processing entities: (i) a remote site 197, (ii)a central site 198, and (iii) a maker bank site 199. Each of these sitesenlists specific processing techniques which furthers the novelfinancial instrument processing technique of the present invention.

In the present invention, a remote site processor 201 (further detailedin FIG. 3) either autonomously, or under operator/depositor controlinitially remotely “processes” a check into electronic check data bothin the form of image data and informational data which can be furtherprocessed and approved at subsequent portions of the overall process. Inessence, the remote site provides a processing front-end thatelectronically interacts via interface 202 with central site 198 throughthe transfer of electronic check data for review and processing byelectronic means at a central site. Remote site 197 performs functionsrelating to the physical check including scanning, reading, and printingon the checks. Remote site 197 also exchanges image and/or authorizationdata with the other entities as further described below.

Central site 198 of FIG. 2 interacts via interfaces 207, 208 with makerbank site 199 for completing the clearing process relating to the checkor related instrument. Central site 198 is comprised of a central siteprocessor 203 which coordinates verification and account interaction.Central site 198 also provides both electronic storage of image andinformation data as well as providing an interface to maker bank site199. Central site 198 provides image conversion technology forconverting check data from electronic form back to a hard copy checkformat for processing, printing, and archiving when required by moretraditional banking processes. Otherwise, a system 205 may process theimage of the check in image format. System 205 prevents the need toreprint the check and send the duplicate check through the check readersorters.

Maker bank site. 199 performs more traditional account processing ofinformation received from central site 198 such as from central siteFederal Reserve Bank 106. Maker bank site 199 is further comprised ofmaker bank FRB 107 and maker bank 108 and engages in account processingand statement generation.

FIG. 3 depicts the remote site as well as the interaction by a depositoror operator, in accordance with a preferred embodiment. The presentinvention commences with the presentation of a physical instrument suchas a check by a bearer to remote site 197. A remotescanner/reader/printer 309 provides the interface to the bearer forpresentment of the check. Remote scanner/reader/printer 309, in thepreferred embodiment, is a multifunction device capable of independentlyperforming each of the functions of scanning, reading, and printing uponthe check or physical financial instrument. It is also contemplated thatindividual devices for performing each of these functions,scanning-reading-printing, may be integrated, whether automatically ormanually, to perform the combination of functions upon the check.

Remote scanner/reader/printer 309 is connected via an interface 310 toremote processor 201. Remote site processor 201, like each of the otherprocessor elements in the present invention, may be comprised ofexecution-capable devices, and is preferably comprised of a computer,such as a personal, network, or general purpose computer. Remoteprocessor 201 is further coupled to central site processor 203 via aninterface transmission or network media 202, which may take the form ofone or more of wired or wireless media such as public switched lines,Internet or wide-area network connection, microwave, satellite, digitalphone, private leased lines, or any other current or future acceptablecommunications facility and may further employ include encryption overthe interface.

Remote site processor 201 executes according to executable instructionssuch as computer-executable instructions which are figuratively depictedin FIG. 3 as software 313. Software 313 is loaded or interfaces withremote processor 201 via a bus or other physical interface depicted asinterface 312. Generally, software 313 is comprised of executableinstructions for (i) causing remote site processor 201 to instruct andexecute the necessary steps for capturing the check or financialinstrument both physically and electronically, (ii) performing requisitedata processing on the electronic data from the capturing step, and(iii) exchanging the captured data over interface or media 202 tocentral site processor 203 when appropriate.

While details relating to the processing and method steps executed byremote site processor 201 via software 313 are described below, remotesite processor 201 further determines if remote processing decisionalinformation such as comparison information for making decisions on thenumber of deposits, dollar amount of deposits or dollar amount ofmonetary items is available on remote site processor 201. If suchdecisional information is not available at remote site 197, then centralsite check processing may require additional steps. Remote siteprocessor 201 also determines if the remote processing informationneeded to void, endorse and itemize number each check 303 is availableto remote processor 201 for processing of check 303, according to themethod of the present invention. If such remote processing informationis available but not current, the remote processing information may beupdated by either having the updated information manually entered, forexample by way of an operator via a keyboard at terminal 301 attached toremote processor 201, or the updated information may be retrieved byremote processor 201, under the direction of software 313, from centralsite processor 203.

In a preferred embodiment, the updated information may be housed in adata set at central site processor 203 and updated by the bank of firstdeposit, affiliated with remote site 197 prior to loading to remote siteprocessor 201. Remote site processor 201, executing software 313, thendetermines if all of the decisions concerning voiding, endorsing, itemnumbering, number of deposits, number of checks or dollar sizes ofdeposits or items can be made by remote site processor 201 by checkingthe remote processing information as pre-defined in remote siteprocessor 201.

If the decisions on endorsing, voiding, item numbering, number ofdeposits, number or dollar amounts of deposits or monetary items can bemade by remote site processor 201, then to ensure proper accountprocessing of check 303, a depositor at terminal 301 is lead through aseries of instructions to gather deposit information required to ensurecredits are made to the appropriate deposit accounts(s). In onepreferred embodiment, the deposit information is read, interpreted andentered automatically by reader/scanner/printer 309. In anotherembodiment, the deposit information is entered manually on, for example,terminal 301 attached to remote site processor 201. Additionally, duringthe practice of the invention, scanner/reader/printer 309 encodes check303 with endorsement and voiding information in order to physically“void” check 303, thereby keeping check 303 from being re-transmitted,for example over media 202, or re-deposited at an actual financialinstitution location for an additional collection. In addition, a uniqueitem identification number may be encoded on check 303 by remote siteprocessor 201 via scanner/reader/printer 309 to aid in tracking dataresulting from processing of check 303.

The process of the present invention continues whenscanner/reader/printer 309 performs the functions of scanning check 303to create electronic check data comprised of image data, informationaldata including MICR encoding (using either MICR, Optical CharacterRecognition (OCR) or other like techniques). Scanner/reader/printer 309“voids” check 303 by endorsing check 303 and printing tracking datathereon. The electronic image data and informational data such as MICRinformation of the voided and endorsed check 303 is transferred overinterface 310 to remote site processor 201 for processing which includesimage integrity verification. When the image integrity is suspect, theintegrity is enhance by either rescanning check 303 or, alternatively,by manual intervention by an operator at terminal 301. If check 303 isrescanned, scanner/reader/printer 309 does not reprint the endorsement,voiding and item numbering information on check 303.

Once the electronic image data and the MICR encoding for the first check303 is determined to be readable and accurate, remote site processor 201determines if this process should be repeated for additional depositsand/or monetary item(s). When remote site processor 201 determines thatprocessing by scanner/reader/printer 309 of individual check(s), underthe direction of remote site processor 201 has ended and that theinformation is complete and ready for transmission via interface/media202, remote site processor 201 formats the electronic image data and theMICR encoding and adds any additional control information in preparationfor transmission to central site processor 203. The physical check 305is stored in file 305 at the remote site. In addition, the check imageis stored on the remote site processor (i.e., magnetic disk, cd rom,etc. not shown on drawing.) Communications between remote site processor201 and central site processor 203 preferably incorporates digitalsignature verification/certification performed by process 311 and dataencryption performed by process 313 to ensure confidentiality.

FIG. 4 depicts the central site processor and the various processes andinterfaces associated therewith, in accordance with a preferredembodiment of the present invention. While the accuracy of electroniccheck data transferred from remote site processor 201 to central siteprocessor 203 will generally retain its integrity through thetransmission, when electronic check data received by central siteprocessor 203, as evaluated and processed by computer-executableinstructions or software loaded therein, is incomplete or inaccurate, orif the image data is not readable, central site processor 203communicates with remote processor 201 giving detailed information to anoperator at terminal 301 concerning the need for additional informationto restore image information or complete incomplete or inaccurate data.Depending upon the type of missing or otherwise incorrect information,corrected or supplemental information may be supplied by an operator atterminal 301 at remote site 197. It may even be necessary to re-scancheck(s) 303 and re-transmit at least portions of the check dataincluding image and/or MICR data to central site processor 203. If check303 is re-scanned, then endorsement, voiding and item number informationare not reprinted on check 303.

Once central site processor 203 determines the new check data receivedfor the deposit is accurate and complete, central site processor 203stores the check image and MICR data of check(s) 303 along with anyadditional associated information such as time that deposit wascaptured, who the customer was who captured the deposit, item number,etc. as received from remote site 201. Central site processor 203confirms receipt of accurate information by sending a notification replyto remote site processor 201 freeing-up remote site processor 201 forfurther processing of subsequent remote check deposit interactions. Inalternate embodiments, central site processor 203 may store image dataon an Internet-enabled check image document storage 405 thereby allowingaccess by the depositor/operator from a terminal such as terminal 301,their designee, or the financial institution of first deposit. It shouldbe pointed out that because of present banking processes, the remotesite should still be associated with a chartered financial institutionthat is authorized to accept the checks from the remote site and processthem through normal check clearing paths. The remote site may be abranch extension of the financial institution or may be a person, orother entity with or without a legal relationship to the financialinstitution that provides the access services to the financialinstitution. Such an affiliated financial institution is still known asthe bank of first deposit. The present embodiment does not proposeeliminating the bank of first deposit, only replacing the method used tocapture deposits. Central site processor 203 maintains authenticationand data integrity at check image document storage 405 through the useof digital signature verification and certification, as well as via dataencryption as shown in processes 314 and 315.

Referring back to FIG. 3, in another embodiment, if the decisions ofendorsing, voiding, item numbering, number of deposits number or checksor dollar amounts of deposits or monetary items cannot be made by remotesite processor 201, for example, when the telecommunications line goesdown and the decision information cannot be updated on the remote siteprocessor, or when the central site processor is inoperable, or thespecific remote site is not authorized to make these decisions (i.e. wewill determine and pass that information to the remote site processorwhen the remote site processor contacts the central site processor priorto accepting deposit information at the remote site), then remote siteprocessor 201 leads a depositor at for example terminal 301 through aseries of instructions to gather deposit information required to ensurecredits are made to the appropriate deposit accounts(s) 104. This can bedone by either using the reader/scanner/printer 309 or by entering thenecessary information on the terminal 301 attached to remote processor201.

Then, check 303 is placed into the scanner/reader/printer 309 where theitem is scanned, the MICR encoding is read preferably using either MICRor Optical Character Recognition (OCR) techniques, and an electronicimage is created of check 303. The electronic image data andinformational data such as MICR information is transferred fromscanner/reader/printer 309 onto remote site processor 201 where remotesite processor 201 edits and confirms that the electronic check data isreadable. If the electronic check data is not readable or correct, thecheck data is corrected at the direction of remote site processor 201 byeither re-scanning check 303 or having a remote site operator manuallykey the information in using terminal 301 or other interface deviceattached to remote site processor 201.

Once the check data is determined to be readable and accurate, remotesite processor 201 then formats the scanned check data and addsadditional control information in preparation for transmission tocentral site processor 203 and the alternate embodiment approachconcludes.

Returning to FIG. 4, after receipt of valid and accurate check data, ifit is determined that the maker bank or maker of the check requires aphysical item, the check image is printed in process 401 and thenprocessed through the central site check image capture system 205. If aphysical item is not required, the image is sent to the check imagecapture system 205. In either case, the check image capture system 205interfaces with the central site 198 deposit systems 103, cashmanagement systems 104, etc. for posting information. The central sitethen forwards either the printed duplicate check or check image to themaker bank 108. This can be done directly through path 208 if the bankof first deposit's central site 198 has an agreement with maker bank 108to exchange checks directly, or if the maker bank and the central sitebank of first deposit do not have an exchange agreement then throughFRBs 106, 107 through path 207.

FIG. 5 depicts the various component and processes of the maker banksite, in accordance with the preferred embodiments of the presentinvention.

The maker bank 108 receives either images of the original paper items303 or printed duplicates of the original paper items 303 eitherdirectly from the bank of first deposit's central site through path 208or from the central site Federal Reserve Bank (FRB) 106 clearing processthrough path 206 (FIG. 4), 207, 120.

Central site FRB 106 will process the check images or paper itemsthrough their capture system and forward the images or paper items tothe maker bank FRB 107 through path 207. The maker bank FRB thenprocesses the items or images through their check capture system 504through path 503 and if necessary, (i.e., when paper duplicate of itemhas not already been printed by the bank of first deposit), print aduplicate of the original check 303 image if a paper item is required bymaker bank 108. As an alternative to the FRB printing an image of theitem, a duplicate of the item could be printed by a print center thathas been set up by the service provider for the purpose of printing thechecks or by third parties that have been contracted for the purpose ofprinting the checks. A maker bank FRB 107 will then forward the printeditems or images to the maker bank 108 via communications ortransportation path depicted as path 120. Maker bank 108 will thenprocess the image or paper item though their in-house applicationsystems depicted by deposit system 110, print check image process, 509,check system process, and customer statement process 506 through paths122, 507, 508, 121, 505, and 507.

These in house systems are not to be taken as systems that all bankswill have or use for this process. They are meant to represent the inhouse processing by maker banks to post monetary items to theiraccounting systems and to send the items (either image or printedduplicate of original items) to the check maker.

FIG. 6 is an interface diagram depicting a high level description of theinteractions between the various components of the present invention, inaccordance with a preferred embodiment.

In the preferred embodiment, the remote site operator enters depositinformation into the remote processor then inserts a draft in a step 601at the scanner/reader/printer located at the remote site. Thescanner/reader/printer reads the item, digitizes and validates the checkimage information and passes it to the software on the remote siteprocessor in a step 602. The remote site processor software receives thedigitized data from the scanner/reader/printer and validates data toensure that the check information is readable and valid in a step 603.When the image is ready for transmission to the central site. The remotesite processor contacts the transmission facility and, incorporatingdigital signature verification and certification and data encryptionsoftware to ensure confidentiality, transmits in a step 604 the itemimage and control information to the central site. The central sitereceives the transmitted data and edits and in a step 611 verifies thecheck data for completeness and content.

When the central site has determined the check image and otherassociated data (relating to both the check image and data, and thedeposit information) is complete and accurate and meets the depositand/or item dollar limits, the central site stores the electronic imageof the check and any additional associated information received from theremote site, and then confirms in a step 605 receipt of good informationby sending to the remote site information needed to endorse the physicalcheck and to void the physical item to keep it from being re-transmittedor deposited at a physical financial institution location forcollection. In addition, a unique item identification number can betransmitted to the inventive software on the remote site processor forprinting on the physical checks as a tracking and research mechanism.The invention allows for printing of the unique item number if it isdetermined by the bank employing the present invention that it isdesirable to print the unique item number for tracking and researchpurposes.

After the inventive software on the remote processor receives specificinformation required to void, endorse, and print the unique item number,the remote site processor and the scanner/reader/printer will pass thecheck again where the remote site will print in a step 606 theinformation on the physical item at the locations required by the rulesgoverning automated check processing. The item is also scanned in a step607 again under the direction of the remote site inventive software andthe new image (containing endorsement, voiding and item numberinformation), and associated additional information required by theinventive software for tracking and control purposes, is edited in astep 608 for accuracy and completeness and if correct is thentransmitted in a step 609 to the central site by the remote site usingthe transmission facility set up for this purposes.

If the data is not readable or correct, the information is corrected atthe direction of the remote site by either re-scanning the item orhaving the remote site operator key the information in using theterminal attached to the remote site processor. If the item is rescannedat this point, the endorsement, voiding and item number information isnot reprinted by the scanner/reader/printer. When the image is ready fortransmission to the central site, the remote site processor contacts thetransmission facility and, incorporating digital signature verificationand certification, and data encryption software to ensureconfidentiality, transmits in a step 609 the item image and controlinformation to the central site.

The central site receives the transmitted updated image data and editsin a step 613 for completeness and content. If the data is incomplete orinaccurate, or if the image data is not readable, the central sitecommunicates, with the remote processor and gives detailed informationto the operator concerning the need for additional information tocomplete the inaccurate data or image information. Based on the specificneed, this information can be supplied using the terminal on the remotesite processor or by re-scanning the physical item and re-transmittingit to the central site. In either case, this information is suppliedunder the direction of the remote site processor. Such additionalinformation is transmitted to the central site processor from the remotesite processor. If the physical item is rescanned at this point, theendorsement, voiding and item number information is not reprinted by thescanner/reader/printer.

Once the central site determines the new data received for the depositis accurate and complete, the central site stores in a step 618 theupdated image of the physical item (on the database(s) maintained by thebank of first deposit's central site for this purpose) along with anyadditional associated information received from the remote site, andthen confirms receipt in a step 610 of good information by sending anotification to the remote site that the process for that specificdeposit is complete unless more items are present in a step 615 andallows for termination of the transmission of information or for thesame process to be followed for other items in a step 614 in thatdeposit or for another deposit in a step 616.

In another embodiment of the invention, the central site stores thecheck image(s) on an Internet enabled documents storage system allowingaccess by the depositor, their designee, or the central site processingcenter of the bank of first deposit. The central site for storing checkimages and associated information preferably employees incorporatingdigital signature verification and certification, and data encryption toensure confidentiality.

If the check is removed from the scanner/reader/printer prematurely, atany time during the process of capturing and transmitting data from theremote site, the transaction information associated with that check willbe considered invalid and not part of the deposit. The depositor willneed to re-scan and re-enter data associated with that check.

The remote site operator will have the option at the remote site torelease deposit information to the central site for processing. This canbe done after either a completion of single deposit in step 615(containing one or more checks) or after completion of all deposits instep 616 (each containing one or more checks) from the remote site.

After the deposit(s) from a specific remote site are complete, thecentral site formats deposit information for processing in theaccounting systems of the bank of first deposit's central site in a step619, including sending the image and other appropriate information forapplication processing in step 620 (including deposit accountingsystems, MICR capture, cash management processing, float processing,etc.).

If an item is an “on us” item, the central site determines that aphysical check is required by the maker, that information is relayed tothe central site and an identical image or facsimile of the originalitem can be printed by either the central site processor or by the itemcapture system in step 619. As an alternative to the central siteprocessor or the item capture system printing an image of the item, aduplicate of the item could be printed by a print center that has beenset up by the service provider for the purpose of printing the checks,or by third parties that have been contracted the purpose of printingthe checks.

If the maker bank is a clearing or correspondent bank then the bank offirst deposit will determine if the maker bank requires a paper or imageitem. If the maker bank requires a paper item, then the bank of firstdeposit's central site will print an exact duplicate of the paper itemand route in step 621 the item to the maker bank. As an alternative tothe bank of first deposit printing a duplicate of the item it could beprinted by a print center that has been set up for the purpose ofprinting the checks, or by third parties that have been contracted forthe purpose of printing the checks. The duplicate printed item willgenerally be as exact as possible based on the quality of the originalimage. If the maker bank does not require a paper item then the bank offirst deposit will route the check image to the maker bank.

If the maker bank is not a clearing or correspondent bank, the checkdata including image will be forwarded in step 621 using the FRB itemclearing processes to route the item image to the FRB affiliated withthe maker bank. The maker bank FRB determines if the maker bank willaccept check data including an image of the item. If the maker bankrequires a paper item, the maker bank FRB prints an identical image ofthe original item with information showing that it is a duplicate andthat the bank of first deposit is central site guarantees the item. Asan alternative to the maker bank's FRB printing the item, it could beprinted by a print center that has been set up for the purpose ofprinting the checks, or by third parties that have been contracted thepurpose of printing the checks. This duplicated item is then sent instep 621 to the maker bank for the collections of funds.

As an alternative, the check image or a printed reproduction of thecheck can be sent in step 621 to the maker bank from either the bank offirst deposit is central site or the maker bank FRB using any otheracceptable clearing method or process.

Check items that need to be returned, are done so in steps 624 and 625to the bank of first deposit to be routed back through the same routethat was used to clear the item. If a paper item has been created, thatitem will be returned along with information showing the reason forreturn. Otherwise, the image will be used for return item purposes untilthe return item image is returned to the bank of first deposit's centralsite. At that point, if the remote site processor 201 is able to receivean item image, the image along with the return reason will be passed tothe remote site processor 201. If the remote site processor is notcapable of receiving check data including an item image, a paperduplicate showing the return reason will be printed either by thecentral site or by the item capture system under the direction of thecentral site and sent to the remote site operator 301. As an alternativeto the central site computer or the item capture system printing thereturned item the item could be printed by a print center that has beenset up for the purpose of printing the checks, or by third parties thathave been contracted for the purpose of printing the checks. The uniqueitem number assigned at capture time by either the central site or theremote site can a be included in all return images and/or returned paperitems to enable complete and accurate tracking of all return items

Re-deposit may be performed in steps 626, 627, 628 of items facilitatedby the remote site prompting the remote site operator with instructionson how to scan and transmit the returned paper item or re-deposit theendorsed image previously captured and stored. The unique item numberassigned at capture time by either the central site or the remote sitefacilitates both options.

FIG. 7 is a detailed flowchart depicting the specific steps for carryingout the invention in accordance with a preferred embodiment.

In a step 700, the software is loaded or otherwise made available to theremote site processor for execution. Those skilled in the art appreciatethe various processes and steps for performing loading of software intoa processor such as the remote site processor. It is also contemplatedwithin the scope of the present invention that the software forexecution on any of the processors may take the form of embeddedexecutable instructions.

Query step 900 determines if deposit processing criteria, (e.g., depositlimit and endorsement information) are present at the remote siteprocessor thereby enabling the initial check deposit processingdecisions to be performed locally at the remote site processor or,alternatively, when the deposit processing criteria is not local on theremote site processor, processing passes through path 906 to step 701.

When query step 900 determines that deposit processing criteria ispresent at the remote site processor, a query step 910 determines if theinformation required to determine deposit limits and endorse the item iscurrent on the remote site processor. If this information is present andcurrent on the remote site processor, processing passes through path 911to step 930 where the remote site operator enters deposit information,as well as the endorsement voiding and item numbering information inprocess step 931 prior to reading the first monetary item in processstep 932 and then proceeding to query step 933. If this information isnot present on the remote site processor or if it is not current, thenquery step 920 determines if this information can be updated by theoperator. If the operator cannot update this information, then processstep 926 allows for updating the deposit information from the centralsite processor and then proceeds to process step 930 where the operatorbegins the remote capture function by entering deposit information. Ifthe operator can update this information, then process step 921 allowsfor the operator to update the deposit limit and endorsement informationand then proceed to process query step 922.

Query step 922 determines if the remote site processor can make depositlimit and/or endorsement decisions. If the decision can be made by theremote site processor, then process step 930 allows for the remoteoperator to enter deposit information, as well as the endorsementvoiding and item numbering information in process step 931 prior toreading the first monetary item in process step 932 and then proceedingto query step 933.

Query step 933 determines if the current item exceeds the item dollarlimit or makes the deposit exceed the deposit dollar limit. If thelimits are exceed then the process of entering items for the givendeposit in process end 934, and the remote site operator has the optionof beginning another deposit or ending the deposit process with thecentral site processor. If the limits are not exceeded, then processstep 935 accounts for the scanned item 932 being edited for accuracy andcompleteness at the remote location prior to proceeding to query step936 where it is determined if the data from the scanned item is correct.

In query step 936, if the data is correct, then query step 937determines if there are more items to scan. If there are more items toscan, then process step 940 passes back to process step 930 to allow theremote operator to begin the item capture process over again. If querystep 937 determines that there are no more items or deposits to process,then process step 941 prepares the item image data or check data fortransmission prior to encrypting the data in process step 942 anddigitally signing the data in process step 943. Process step 944transmits the data image to the central site processor for editing inprocess step 747.

In query step 936, if the data is not correct, then query step 938determines if the operator can correct the data using a data terminalconnected to the remote site processor. If the operator can correct thedata, it is done in process step 946 prior to passing through processstep 947 and going back to query step 936 to test data image forcorrectness. In query step 938, if the scanned item image is notcorrect, process step 948 passes through to process 932 where the itemis rescanned.

Stepping back to query step 922, if endorsement and deposit limitinformation cannot be made by the remote site processor, then the remotesite operator enters deposit information in process step 701 beforescanning the physical monetary item in process step 702 after which theitem image is edited in process step 703.

In query step 704, if the image data is not correct, the check isreturned to process step 702 where it is rescanned and re-edited in step703. If query step 704 determines the image data is correct, then thedata is passed successfully through process step 710 where the image isprepared for transmission to process step 711 where the date isencrypted and step 712 where the digital signature is added inpreparation for transmitting the data to the central site in processstep 713.

Process step 714 receives the transmitted image data and passes it toquery step 715 where it is edited for accuracy and completeness. If thedata is not accurate or complete, it is passed to process step 720 wherethe data is corrected by requesting updated information from the remotesite processor. If the remote site operator cannot supply correct datevia the terminal attached to the remote site processor in query step721, then the check passes through process step 725 to process step 702where it is scanned again in preparation for editing and transmittingthe corrected image to the central site processor. If the remote siteoperator is able and authorized to correct the data in query step 721,the data is entered in process step 722 and passed through path 723 toprocess step 711 where the data is encrypted in preparation fortransmitting to the central site processor.

If in query step 715 the check image data is complete and accurate, thedata is passed to process step 730 where the image is stored in datasets used by the bank for document archival and research as well as in adatabase that is Internet enabled and available for access and researchpurposes by the depositing customer and bank of first deposit. After theimage is stored, a confirmation of good data receipt is created inprocess step 731. This confirmation contains necessary endorsement, itemnumbering and voiding information, which is added to the confirmationrecord in process steps 732 and 733 prior to the confirmation being sentto the remote site processor. The confirmation record is then dataencrypted in process step 734 and a digital signature is added inprocess step 735 prior to the record being transmitted to the remoteprocessor in process step 736. Upon receipt by the remote processor inprocess step 737, the endorsement, item numbering and voidinginformation is printed on the physical check in process step 738 priorto it being re-scanned in process step 739.

After a new check image is created showing the necessary endorsement andvoiding information in process step 740, the new check image is editedto ensure the scanned check data is correct. If in query step 742, it isdetermined that the image data is not complete or accurate, the image ispassed through process step 750 to process step 739 where the physicalcheck is scanned again. If the check is passed through the reader againat this point, the endorsement information has already been printed andwill not be printed again. If in query step 742 it is determined thatthe check image data is good, the data in prepared for transmission inprocess step 743 prior to the data being encrypted in process step 743and digitally signed in process step 745 prior to being transmitted tothe central site in process step 746.

As the central site receives the transmitted image data in process step747, the image is edited by the central site software in process step748 to ensure completeness and accuracy of data. Query step 756determines quality of data and if the data is not complete or accurate,it is sent to query step 791 where it is determined if the deposit limitand or endorsement information is available on the remote siteprocessor. If this information is available on the remote site processorthen the central site processor communicates with the remote siteprocessor through path 794 to determine if the remote site operator cansupply the correct image data in query step 938. The process involved inquery step 938 was discussed above. If query step 791 determines thatthe deposit limit and endorsement information is not on the remoteprocessor then query step 795 determines if the remote operator cansupply the correct image information. If the operator can supply thecorrect image information, it is entered in process step 796 and thecheck image is prepared for transmission in process step 797 and passedto process step 744 (previously discussed) for digital signature andtransmission. If in query step 795 the operator cannot correct/updatethe image information, the check is processed through path 798 toprocess step 739 (previously discussed) where it is scanned again inpreparation for transmitting to central site processor.

Stepping back to query step 756, if the data image is complete andaccurate the endorsed image of the check is stored in process step 760in datasets used by the bank for document archival and research as wellas in a database in process step 762 that is Internet enabled andavailable for the depositing customer and bank of first deposit to beable to access for research purposes.

The central processor site then sends confirmation of good receipt ofdata in process step 762 to the remote processor in process step 763. Atthis point query step 764 at the remote processor determines if thedeposit currently being worked on is complete. If the deposit is notcomplete, then process step 780 returns control to the previouslydiscussed process step 702 where the next item is scanned. If thedeposit is complete query step 764 asks the operator in query step 765if there is another deposit. If there is another deposit to beprocessed, process step 766 passes through to previously discussedprocess step 701 where the new deposit process is initiated. If there isnot another deposit as determined in query step 765, the remote entryprocess is completed and the captured deposit and image information isentered into application processing for the bank of first deposit'scentral site item capture system in process step 771, the depositsystems in process step 772 and the cash management systems in processstep 773.

In the course of processing a deposit, it is integral to the decisionmaking to understand which banks the deposited items are drawn (i.e. whois the maker bank). Query step 774 determines if the monetary items inthe deposit are “on us” items (i.e. items drawn on the bank of firstdeposit). If the items are “on us,” the system determines, in query step850, if the check maker requires a paper check. If they do, then aduplicate of the original check is printed in process step 851 and thepaper item is sent to the maker of the check. In addition, the image ofthe item is sent to process step 860 (discussed below) for processing oninternal computer accounting systems. In query step 850, if the maker ofthe check does not require a paper duplicate of the original item,process step 860 passes the checks image through the internal accountingsystems to query step 861 where it is determined if the item is payable(i.e., does the check maker have sufficient finds in their account tocover the check, is the maker account still open, etc.).

If query step 861 determines the item is payable, the check data isposted to the maker's account and the process ends for that check itemin step 863. If query step 861 determines the item is not payable, thenprocess step 870 returns either the printed duplicate of the check orthe check image to the original depositor at the remote location. Inquery step 871, a remote site operator determines if they want tore-deposit the item or return it. If they decide to return the item,this is done in process step 880 and path 881 sends control topreviously discussed process end step 863. If query step 871 determinesthat the item should be re-deposited for collection, query step 872determines if this is to be done using the duplicate paper item or theoriginal check image.

If the return from query step 872 is to be done using the duplicatepaper item, then this is done in path 873 where control is sent back topreviously discussed process step 764 where the item is deposited usingthe scanner/reader/printer. If the check return from query step 872 isto be done using the original captured check image for the item, processstep 875 allows for the remote operator to initiate this process in astep 875 by entering the unique number assigned to the original check atcapture time. This information is sent to the central site processor viaprocess step 876 and control is then passed through path 877 to processstep 764 where the item is deposited using the check original checkimage.

Stepping back to query step 774 where it is determined if the item is anon us item, if query step 774 determines that the item in not an “on us”item then query step 800 determines if the maker bank is a clearing bankor a correspondent bank. If the maker bank is a clearing bank or acorrespondent bank, then query step 801 determines if the maker bankrequires a paper copy of the original check item. If they require apaper duplicate, then a paper duplicate of the original item is printedin process step 802 and sent to the maker bank in path 803 which passescontrol to process step 805 discussed below. If query step 801determines that the maker bank does not require a printed duplicatecheck, the image of the original item drawn on the maker bank is sent tothe maker bank in process step 805 and the maker bank sends the itemthrough path 806 to previously discussed process step 861 to determineif the item is payable at the maker bank.

Stepping back to query step 800, if the payee bank is not a clearingbank or correspondent bank, process step 810 sends the check image tothe Federal Reserve Bank (FRB) serving as the clearing entity for thebank of first deposit. That branch of the Federal Reserve Bank forwardsthe check image to the Federal Reserve Bank serving as the clearingagent for the maker bank. That Federal Reserve Bank determines in querystep 811 if the maker bank requires a paper duplicate of the originalpaper check. If the maker bank requires a paper item, the FRB prints thepaper item in process step 812, incorporates the duplicate check intheir processing systems as depicted in process step 813 where the itemis sent in path 814 to process step 815 where the maker bank receivesthe paper item. As an alternative to the FRB printing a duplicate of theitem it could be printed by a print center that has been set up for thepurpose of printing the checks or by third parties that have beencontracted for the purpose of printing the checks. If in query step 811the maker bank does not require a paper check, the FRB sends the imageto the maker bank that receives the image in process step 815 andpasses, via path 816, either the check image or printed duplicate of theoriginal check to previously discussed query step 861 to determine ifthe item is payable by the maker.

FIG. 8 depicts a high-level processing diagram of the various entitiesinvolved in the overall financial processing in accordance with anotherembodiment of the present invention. The present embodiment comprisesthree primary processing entities: (i) a capture site 196, (ii) acentral site 198, and (iii) a maker bank site 199. Each of these sitesenlists specific processing techniques which further the financialinstrument processing technique of the present invention. In thisembodiment capture site 196 represents sites incorporating front-endprocessing such as, for example, lock box and MICR processing sites thatwill be enabled to capture physical items of item images for the purposeof interfacing into the invention. While FIG. 8 depicts both lock boxand MICR within site 196, it is generally the case that only a singlefunction is resident within a site and in the present embodiment, thesedistinct functionalities are alternatives and are depicted both withinsite 196 for illustrative conciseness. Sites 198 and 199 representsimilar sites as described above in the earlier embodiments.

Those of skill in the art appreciate the functionality of “lock box”systems and “MICR” system. In short, “lock box” systems are a collectionmethod used to accelerate the processing of a business entity'sreceivables by allowing a service provider, usually a bank or otherfinancial institution, to collect payments and process receivables onbehalf of the business entity, generally by directing customers to sendpayments to a post office box or other address controlled by the serviceprovider. The service provider picks-up the payments from the box andprocesses the payments and posts the payments to an account. Receiptsand/or copies of the checks are then forwarded back to the businessentity.

MICR systems are check reading systems capable of reading routing andfinancial institution information that has been printed on the check orother instrument using magnetic ink and in a special font. MICR systemsmay also generate transactional data from the magnetic ink charactersfor processing by a financial institution.

In the present embodiment, a remote site 196 captures item images usingtraditional methods for capturing monetary items such as lock boxprocessing sites or MICR capture sites. The methods at these sites 196either autonomously, or under operator/depositor control initiallyremotely “processes” a check into electronic check data both in the formof image data and informational data which can be further processed andapproved at subsequent portions of the overall process. In essence, thecapture site 196 provides a processing front-end that electronicallyinteracts via interface 1520, 1530 with central site 198 through thetransfer of electronic check data comprised of check images, and/or MICRline information for review and processing by electronic means at acentral site. Remote-capture site 196 performs functions relating to thephysical check including validating the check and image data andprinting on the checks. Capture site 196 also exchanges image and/orauthorization data with the other entities as further described below.

Central site 198 of FIG. 8 interacts via interfaces 1520, 1530 withmaker bank site 199 for completing the clearing process relating to thecheck or related instrument. Central site 198 is comprised of a centralsite processor 203, which coordinates verification and accountinteraction. Central site 198 also provides both electronic storage ofimage and information data as well as providing an interface to makerbank site 199. Central site 198 provides image conversion technology incentral site processor 203 for converting check data from electronicform back to a hard copy check format for processing, printing, andarchiving when required by more traditional banking processes.Otherwise, a system 205 may process the image of the check in imageformat. System 205 prevents the need to reprint the check and send theduplicate check through the check reader sorters. Maker bank site 199performs more traditional account processing of information receivedfrom central site 198 such as from central site Federal Reserve Bank106. Maker bank site 199 is further comprised of maker bank FRB 107 andmaker bank 108 and engages in account processing and statementgeneration.

FIG. 9 depicts the central site processor and the various processes andinterfaces associated therewith, in accordance with a preferredembodiment of the present invention. While the accuracy of electroniccheck data transferred from lock box processor 1500 and financialinstitution processor 1510 to central site processor 203 will generallyretain its integrity through the transmission, when electronic checkdata received by central site processor 203, as evaluated and processedby computer-executable instructions or software loaded therein, isincomplete or inaccurate, or if the image data is not readable, centralsite processor 203 communicates with remote processors 1500 and 1510giving detailed information to an operator concerning the need foradditional information to restore image information or completeincomplete or inaccurate information.

Once central site processor 203 determines the new check data receivedfor the lock box processor 1500 or financial institution processor 1510is accurate and complete, central site processor 203 stores the checkimage and MICR data of check(s) 303 (FIG. 3) along with any additionalassociated information such as time that deposit was captured, who thecustomer was who captured the deposit, item number, etc. as receivedfrom remote capture site 196. In alternate embodiments, central siteprocessor 203 may store image data on an Internet-enabled check imagedocument storage 405 thereby allowing access by the depositor/operatorfrom a terminal such as terminal 301, their designee, or the financialinstitution of first deposit. It should be pointed out that because ofpresent banking processes, the remote site should still be associatedwith a financial institution that is authorized to accept the checksfrom the remote site and process them through normal check clearingpaths. The remote site may be a branch extension of the financialinstitution or may be a person, or other entity with or without a legalrelationship to the financial institution that provides the accessservices to the financial institution. Such an affiliated financialinstitution is still known as the bank of first deposit. The presentembodiment does not propose eliminating the bank of first deposit, onlyreplacing the method used to capture deposits. Central site processor203 maintains authentication and data integrity at check image documentstorage 405 through the use of digital signature verification andcertification, as well as via data encryption as shown in processes 314and 315.

Returning to FIG. 9, after receipt of valid and accurate check data, ifit is determined that the maker bank or maker of the check requires aphysical item, the check image is printed in process 401 and thenprocessed through the central site check image capture system 205. If aphysical item is not required, the image is sent to the check imagecapture system 205. In either case, the check image capture system 205interfaces with the central site 198 deposit systems 103, cashmanagement systems 104, etc. for posting information. The central sitethen forwards either the printed duplicate check or check image to themaker bank 108. This can be done directly through path 208 with makerbank 108 to exchange checks directly, or through FRBs 106, 107 throughpaths 207, 1540 or through any other clearing bank.

FIG. 10 is a detailed flowchart depicting the specific steps forcarrying out the invention in accordance with a preferred embodiment.

In a step 1000, items are formatted for transmission from systems suchas lock box processors 1500 or financial institution processors, such asMICR systems, 1510 where the checks have been captured, balanced andreconciled. The data is encrypted in step 1002 and is either digitallysigned or protected by any other reasonably secure method in step 1004.The process of encrypting and digitally signing data is to ensureprivacy and security as the data is transmitted over publicly andprivately accessible transmission facilities. The images that areformatted for transmission are comprised of corrected check images andMICR line information resulting from the lock box and MICR captureprocesses at the Lock Box Processor sites 1500 and Financial InstitutionProcessor sites 1510. The formatted data are transmitted in step 1006 tothe central site processor over transmission facilities 1520 and 1530respectively, where it is received in process step 1010. Those skilledin the art appreciate the various processes and steps for performingloading of software into a processor such as the central site processor.It is also contemplated within the scope of the present invention thatthe software for execution on any of the processors may take the form ofembedded executable instructions.

The transmitted data passes through process step 1020 to query step 1030where the central site processor determines if the data transmission wascompleted successfully and if the data received is correct. If it isdetermined in query step 1030 that the transmission was not completedsuccessfully the transmitter site is notified in process step 1480 tore-transmit the data and the process begins again by passing throughprocess step 1490 to process step 1000 to begin the transmission processagain. If in query step 1030 it is determined that the transmission wassuccessfully completed then process step 1040 validates that the data iscorrectly formatted and that the content is such that is can beprocessed by the central site processor. If it is determined in querystep 1050 that the data content is not useable or that the data is notformatted correctly then in process step 1460 the transmitter site isnotified to correct and re-transmit the data and process step 1470passes to process step 1000 to begin the transmission process again oncethe data has been corrected by the capture site 196. If in query step1050 it is determined that the check image and MICR data is complete andaccurate, the data is passed to process step 1060 where the image isstored in data sets used by the bank for document archival and researchas well as in a database in process step 1070 that is Internet enabledand available by the depositing customer and bank of first deposit to beable to access for research purposes.

In the course of processing check images, it is informative to thedecision making to understand on which banks the imaged items are drawn(i.e. who is the maker bank). Query step 1080 determines if the monetaryitems in the deposit are “on us” items (i.e. items drawn on the bank offirst deposit). If the items are “on us,” the system determines, inquery step 1090 if the item is payable. If query step 1090 determinesthe item is payable (i.e., does the check maker have sufficient funds intheir account to cover the check, is the maker account still open, etc.)then process step 1100 posts the check data to internal accountingsystems Then process step 1110 and query step 1120 determine if themaker needs to have a paper copy of the check. If the maker requires acopy of the check that copy is printed in process step 1130 and thecheck is included in the maker's regular statement in process 1140 andthe process ends in step 1150. If in query step 1120 it is determinedthat the maker doesn't need a paper copy of the original check then thecheck image is included in the customers regular statement in processstep 1160 and the process is ended with step 1170. Stepping back toquery step 1090, if it is determined that the on-us item in not payableby the maker the check image or physical item is returned to thedepositor in process step 1180 and the process ends in step 1182.

Returning to query step 1080 if it is determined the item is not anon-us item then query step 1190 determines if the maker bank is aclearing bank or a correspondent bank. If the maker bank is a clearingbank or a correspondent bank then query step 1200 determines if theclearing bank or correspondent bank needs a paper check. If it isdetermined that a paper check is required by the clearing bank orcorrespondent bank then a duplicate of the original check is printedfrom the image and forwarded to the clearing bank in process step 1210.The clearing bank or correspondent bank receives the printed copy of thecheck in process step 1220 and determines passing through process step1230 to query step 1240 if the item is payable by the maker. If it isdetermined in query step 1240 that the item is payable by the maker, theitem is posted into the maker's account in process step 1250 and theprocess comes to an end in step 1260. If, however, in query step 1240 itis determined that the item is not payable by the maker the check imageor physical duplicate item is returned, using traditional check returntechniques, to the original depositor in process step 1270 and theprocess comes to an end in step 1280.

Returning to query step 1200, if it is determined that the clearing bankor correspondent bank does not need a paper check to process throughtheir systems or for the maker's statement then the check image is sentto the clearing bank or correspondent bank in process step 1290 andprocess step 1300 directs the process to process step 1230 where it isdetermined if the item is payable by the maker. The clearing bank orcorrespondent bank determines by passing through process step 1230 toquery step 1240 if the item is payable by the maker. If it is determinedin query step 1240 that the item is payable by the maker the item isposted into the maker's account in process step 1250 and the processcomes to an end in step 1260. If however, in query step 1240 it isdetermined that the item is not payable by the maker the check image orphysical duplicate item is returned, using traditional check returntechniques, to the original depositor in process step 1270 and theprocess comes to an end in process step 1280.

Returning to query step 1190, if the payee bank is not a clearing bankor a correspondent bank, process step 1310 sends the check image to theFederal Reserve Bank (FRB) serving as the clearing entity for the bankof first deposit. That branch of the Federal Reserve Bank forwards thecheck image to the Federal Reserve Bank serving as the clearing agentfor the maker bank. As an alternative, the bank of first deposit cansend the check directly to the FRB acting as the clearing agent for themaker bank. The Federal Reserve Bank acting as the clearing bank for themaker bank determines in query step 1320 if the maker bank requires apaper duplicate of the original paper check. If the maker bank requiresa paper item, the FRB prints the paper item in process step 1330,incorporates the duplicate check in their processing systems as depictedin process step 1340 and the maker bank receives the paper item inprocess step 1350 and passes to process step 1360 to determine if theitem is payable by the maker as determined in query step 1370. As analternative to the FRB printing a duplicate of the item in process step1330, a duplicate could be printed by a print center set-up for thepurpose of printing the checks or by third parties that have beencontracted for the purpose of printing the checks. If in query step 1370the item is payable the item is posted to the maker's account in processstep 1380 and through the clearing or correspondent banks other internalaccounting systems in process step 1390 and the process ends in step1400. If in query step 1370 it is determined that the item is notpayable by the maker the item image or printed item is returned to theoriginal depositor in process step 1410 and the process ends in step1420.

Stepping back to query step 1320, if the maker bank does not require apaper check, the FRB sends (in process step 1430) the image to the makerbank that receives the image in process step 1440 and passes throughprocess step 1450, via path 1360, the check image of the original checkto previously discussed query step 1370 to determine if the item ispayable by the maker. Process step 1360 passes to query step 1370 todetermine if the item is payable by the maker. If the item is payablethen in process step 1380 the item is posted to the maker's account inprocess step 1390 and the process ends in step 1400. Stepping back toquery step 1370, if the item is not payable either the check image orthe printed duplicate of the original monetary item is returned to theoriginal depositor in process step 1410 and the process ends in step1420.

The present invention may be embodied in other forms without departingfrom its spirit or essential characteristics. As properly understood,the preceding description of specific embodiments is illustrative onlyand in no way restrictive. The scope of the invention is, therefore,indicated solely by the appended claims as follows.

1. A computer-readable medium comprising a program product for depositprocessing at a central system a plurality of checks with accompanyingdeposit information, comprising: at least one computer-readable mediumhaving computer readable program code embodied therein or among them ifmore than one medium, to be executed by a computer, the computerreadable program code, when executed, capable of causing a machine toperform the following method steps the central system receiving depositinformation for a plurality of different deposit transactions, with thedeposit information including for each of the different deposittransactions a deposit account designation in a bank of fist deposit,electronic check data and original check image data for at least onecheck to be deposited, wherein the central system is separate from MICRcapture, deposit accounting, cash management, and float processingsystems for the bank of first deposit; a computer at the central systemcomparing at least one deposit parameter that is not an account numberto an individual customer limit in advance of transmitting any of thedeposit information to the bank of first deposit; sending acommunication if the individual customer limit is exceeded; the centralsystem performing at least one of sorting the received depositinformation and error checking the received deposit information inadvance of transmitting any of the deposit information to the bank offirst deposit; the central system transmitting at least some of thedeposit information for each different deposit transaction to the bankof first deposit; the central system transmitting electronic check dataand check image data directly or indirectly to the maker bank, or to aFederal Reserve Bank or a correspondent bank, or to a print site forultimate delivery in hard copy to a maker bank, with this transmittingbypassing the MICR capture, deposit accounting, cash management, floatprocessing or other systems of the bank of first deposit.
 2. Thecomputer-readable medium as defined in claim 1, wherein the depositparameter is a number of monetary items in the deposit information andthe individual customer limit is customer number of monetary itemslimit.
 3. The computer-readable medium as defined in claim 1, whereinthe deposit parameter is total monetary amount of a deposit in thedeposit information and the individual customer limit is a customertotal monetary amount deposit limit.
 4. The computer-readable medium asdefined in claim 1, wherein the deposit parameter is monetary amount ofa monetary item in the deposit information and the individual customerlimit is a customer monetary item amount limit.
 5. The computer-readablemedium as defined in claim 1, wherein the deposit parameter is a numberof deposits and the individual customer limit is a number of depositslimit.
 6. The computer-readable medium as defined in claim 1, whereinthere are at least two deposit parameters compared against respectiveindividual customer deposit limits, with two deposit parameters selectedfrom the group consisting of a number of monetary items in the depositinformation with the individual customer limit being a customer numberof monetary items limit, a total monetary amount of a deposit in thedeposit information with the individual customer limit being a customertotal monetary amount deposit limit, a monetary amount of a monetaryitem in the deposit information with the individual customer limit beinga customer monetary item amount limit, and a number of deposits and theindividual customer limit is a number of deposits limit.
 7. Thecomputer-readable medium as defined in claim 1, wherein there are atleast three deposit parameters compared against respective individualcustomer deposit limits, with three deposit parameters selected from thegroup consisting of a number of monetary items in the depositinformation with the individual customer limit being a customer numberof monetary items limit, a total monetary amount of a deposit in thedeposit information with the individual customer limit being a customertotal monetary amount deposit limit, a monetary amount of a monetaryitem in the deposit information with the individual customer limit beinga customer monetary item amount limit, and a number of deposits and theindividual customer limit is a number of deposits limit.
 8. Thecomputer-readable medium as defined in claim 1, wherein there are atleast four deposit parameters compared against respective individualcustomer deposit limits, with the four deposit parameters comprising anumber of monetary items in the deposit information with the individualcustomer limit being a customer number of monetary items limit, a totalmonetary amount of a deposit in the deposit information with theindividual customer limit being a customer total monetary amount depositlimit, a monetary amount of a monetary item in the deposit informationwith the individual customer limit being a customer monetary item amountlimit, and a number of deposits and the individual customer limit is anumber of deposits limit.
 9. The computer-readable medium as defined inclaim 1, wherein the program code for receiving deposit informationreceives deposit information for a plurality of different deposittransactions each including a deposit account designation to a differentbank of first deposit; and further comprising program code for sendingat least some of the deposit information for each different one of aplurality of the deposit transactions to a respective different one ofthe banks of first deposit.
 10. The computer-readable medium as definedin claim 1, further comprising program code for: determining if themaker bank requires a hard copy of the check; and if it does, sendingcheck image data to the print site for printing a hard copy of the checkand sending the hard copy of the check directly or indirectly to themaker bank.
 11. The computer-readable medium as defined in claim 1,further comprising program code for: determining if the maker bankrequires a hard copy of the check; if it does, printing a copy of thecheck from the check image data and forwarding directly or indirectlythe printed check to the maker bank.
 12. The computer-readable medium asdefined in claim 1, further comprising program code for determining if abank of first deposit is a maker bank for the check; and if it is themaker bank, then determining if the maker bank requires a hard copy ofthe check; if the maker bank does require a hard copy of the check, thencausing a copy of the check to be printed.
 13. The computer-readablemedium as defined in claim 1, further comprising program code forreceiving return check image data for a return check coupled with areference key for an original deposit transaction; and sending thereturn check image data with the reference key directly or indirectly tothe maker bank for re-presentment.
 14. The computer-readable medium asdefined in claim 1, further comprising program code for determining if are-presentment of a returned check requires a hard copy of the returncheck or if the check data image is acceptable for the re-presentment;and if the check image is acceptable, obtaining a reference keyassociated with an original deposit transaction; and sending directly orindirectly the check image data and the reference key to the maker bank.15. The computer-readable medium as defined in claim 1, furthercomprising a system with a plurality of different remote sites, withprogram code for the following steps being performed at each of aplurality of the remote sites: obtaining deposit data for one or moreoriginal checks; converting data for each of the one or more originalchecks into electronic check data; creating original check image datafor each of the one or more original checks; creating endorsed and/orvoided check image data for each of a plurality of the one or moreoriginal checks; electronically associating the deposit data, theelectronic check data and the original check image data and the endorsedand/or voided check image data; and transmitting the electronic checkdata and the original check image data and/or the endorsed and/or voidedcheck image to the central system.
 16. The computer-readable medium asdefined in claim 15, further comprising program code for: determining ifendorsement information at one of the remote sites is up-to-date; and ifthe endorsement information at the remote site is not up-to-date, thendownloading updated endorsement information from the central system. 17.The computer-readable medium as defined in claim 1, further comprisingthe central system sending endorsement information to the remote site tobe used to add an endorsement.
 18. A system for deposit processing at acentral system a plurality of checks with accompanying depositinformation, comprising: an electronic storage; and at least oneprocessor operatively coupled to the electronic storage, wherein the atleast one processor includes therein, or among them if more than oneprocessor, the following components a component of the central systemfor receiving deposit information for a plurality of different deposittransactions, with the deposit information including for each of thedifferent deposit transactions a deposit account designation in a bankof first deposit, electronic check data and original check image datafor at least one check to be deposited, wherein the central system isseparate from MICR capture, deposit accounting, cash management, andfloat processing systems for the bank of first deposit; a computer ofthe central system comparing at least one deposit parameter that is notan account number to an individual customer limit in advance oftransmitting any of the deposit information to the bank of firstdeposit; a component for sending a communication if the individualcustomer limit is exceeded; a component of the central system performingat least one of sorting the received deposit information and errorchecking the received deposit information in advance of transmitting anyof the deposit information to the bank of first deposit; a component ofthe central system transmitting at least some of the deposit informationfor each different deposit transaction to the bank of first deposit; acomponent of the central system transmitting electronic check data andcheck image data directly or indirectly to the maker bank or to aFederal Reserve Bank or a correspondent bank, or to a print site forultimate delivery in hard copy to the maker bank, with this transmittingbypassing the MICR capture, deposit accounting, cash management, floatprocessing or other systems of the bank of first deposit.
 19. The systemas defined in claim 18, wherein the deposit parameter is a number ofmonetary items in the deposit information and the individual customerlimit is a customer number of monetary items limit.
 20. The system asdefined in claim 18, wherein the deposit parameter is a total monetaryamount of a deposit in the deposit information and the individualcustomer limit is a customer total monetary amount deposit limit. 21.The system as defined in claim 18, wherein the deposit parameter is amonetary amount of a monetary item in the deposit information and theindividual customer limit is a customer monetary item amount limit. 22.The system as defined in claim 18, wherein the deposit parameter is anumber of deposits and the individual customer limit is a number ofdeposits limit.
 23. The system as defined in claim 18, wherein there areat least two deposit parameters compared against respective individualcustomer deposit limits, with two deposit parameters selected from thegroup consisting of a number of monetary items in the depositinformation with the individual customer limit being a customer numberof monetary items limit, a total monetary amount of a deposit in thedeposit information with the individual customer limit being a customertotal monetary amount deposit limit, a monetary amount of a monetaryitem in the deposit information with the individual customer limit beinga customer monetary item amount limit, and a number of deposits and theindividual customer limit is a number of deposits limit.
 24. The systemas defined in claim 18, wherein there are at least three depositparameters compared against respective individual customer depositlimits, with three deposit parameters selected from the group consistingof a number of monetary items in the deposit information with theindividual customer limit being a customer number of monetary itemslimit, a total monetary amount of a deposit in the deposit informationwith the individual customer limit being a customer total monetaryamount deposit limit, a monetary amount of a monetary item in thedeposit information with the individual customer limit being a customermonetary item amount limit, and a number of deposits and the individualcustomer limit is a number of deposits limit.
 25. The system as definedin claim 18, wherein there are at least four deposit parameters comparedagainst respective individual customer deposit limits, with the fourdeposit parameters comprising a number of monetary items in the depositinformation with the individual customer limit being a customer numberof monetary items limit, a total monetary amount of a deposit in thedeposit information with the individual customer limit being a customertotal monetary amount deposit limit, a monetary amount of a monetaryitem in the deposit information with the individual customer limit beinga customer monetary item amount limit, and a number of deposits and theindividual customer limit is a number of deposits limit.
 26. The systemas defined in claim 18, wherein the system for receiving depositinformation receives deposit information for a plurality of differentdeposit transactions, each one of the plurality including a depositaccount designation to a different bank of first deposit; and whereinthe component for sending sends at least some of the deposit informationfor each different one of a plurality of the deposit transactions to arespective different one of the banks of first deposit.
 27. The systemas defined in claim 18, further comprising a component for: determiningif the maker bank requires a hard copy of the check; and if it does,sending check image data to the print site for printing a hard copy ofthe check and sending the hard copy of the check directly or indirectlyto the maker bank.
 28. The system as defined in claim 18, furthercomprising a component for: determining if the maker bank requires ahard copy of the check; if it does, printing a copy of the check fromthe check image data and forwarding directly or indirectly the printedcheck to the maker bank.
 29. The system as defined in claim 18, furthercomprising component for determining if the bank of first deposit is amaker bank for the check; and if it is the maker bank for the check,then determining if the maker bank requires a hard copy of the check; ifthe maker bank does require a hard copy of the check, then causing acopy of the check to be printed.
 30. The system as defined in claim 18,further comprising a component for receiving return check image data fora return check coupled with a reference key for an original deposittransaction; and sending the return check image data with the referencekey directly or indirectly to the maker bank for re-presentment.
 31. Thesystem as defined in claim 18, further comprising a component fordetermining if a re-presentment of a returned check requires a hard copyof the return check or if the check data image is acceptable for there-presentment; and if the check image is acceptable, obtaining areference key associated with an original deposit transaction; andsending directly or indirectly the check image data and the referencekey to the maker bank.
 32. The system as defined in claim 18, furthercomprising a system with a plurality of different remote sites, eachwith components for performing the following steps at each of aplurality of the remote sites: obtaining deposit data for one or moreoriginal checks; converting data for each of the one or more originalchecks into electronic check data; creating original check image datafor each of the one or more original checks; creating endorsed and/orvoided check image data for each of a plurality of the one or moreoriginal checks; electronically associating the deposit data, theelectronic check data and the original check image data and the endorsedand/or voided check image data; and transmitting the electronic checkdata and the original check image data and/or the endorsed and/or voidedcheck image to the central system.
 33. The system as defined in claim32, further comprising a component for: determining if endorsementinformation at one of the remote sites is up-to-date; and if theendorsement information at the remote site is not up-to-date, thendownloading updated endorsement information from the central system. 34.The system as defined in claim 18, further comprising the central systemsending endorsement information to the remote site to be used to add anendorsement.
 35. A method for deposit processing by a central system aplurality of checks with accompanying deposit information, comprising:the central system receiving deposit information for a plurality ofdifferent deposit transactions, with the deposit information includingfor each of the different deposit transactions a deposit accountdesignation in a bank of first deposit, electronic check data andoriginal check image data for at least one check to be deposited,wherein the central system is separate from MICR capture, depositaccounting, cash management, and float processing systems for the bankof first deposit; a computer at the central system comparing at leastone deposit parameter that is not an account number to an individualcustomer limit in advance of transmitting any of the deposit informationto the bank of first deposit; sending a communication if the individualcustomer limit is exceeded; the central system performing at least oneof sorting the received deposit information and error checking thereceived deposit information in advance of transmitting any of thedeposit information to the bank of first deposit; the central systemtransmitting at least some of the deposit information for each differentdeposit transaction to the bank of first deposit; the central systemtransmitting electronic check data and check image data directly orindirectly to the maker bank, or to a Federal Reserve Bank or acorrespondent bank, or to a print site for ultimate delivery in hardcopy to a maker bank, with this transmitting bypassing the MICR capture,deposit accounting, cash management, float processing or other systemsof the bank of first deposit.
 36. The method as defined in claim 35,wherein the deposit parameter is a number of monetary items in thedeposit information and the individual customer limit is a customernumber of monetary items limit.
 37. The method as defined in claim 35,wherein the deposit parameter is a total monetary amount of a deposit inthe deposit information and the individual customer limit is a customertotal monetary amount deposit limit.
 38. The method as defined in claim35, wherein the deposit parameter is a monetary amount of a monetaryitem in the deposit information and the individual customer limit is acustomer monetary item amount limit.
 39. The method as defined in claim35, wherein the deposit parameter is a number of deposits and theindividual customer limit is a number of deposits limit.
 40. The methodas defined in claim 35, wherein there are at least two depositparameters compared against respective individual customer depositlimits, with two deposit parameters selected from the group consistingof a number of monetary items in the deposit information with theindividual customer limit being a customer number of monetary itemslimit, a total monetary amount of a deposit in the deposit informationwith the individual customer limit being a customer total monetaryamount deposit limit, a monetary amount of a monetary item in thedeposit information with the individual customer limit being a customermonetary item amount limit, and a number of deposits and the individualcustomer limit is a number of deposits limit.
 41. The method as definedin claim 35, wherein there are at least three deposit parameterscompared against respective individual customer deposit limits, withthree deposit parameters selected from the group consisting of a numberof monetary items in the deposit information with the individualcustomer limit being a customer number of monetary items limit, a totalmonetary amount of a deposit in the deposit information with theindividual customer limit being a customer total monetary amount depositlimit, a monetary amount of a monetary item in the deposit informationwith the individual customer limit being a customer monetary item amountlimit, and a number of deposits and the individual customer limit is anumber of deposits limit.
 42. Previously presented) The method asdefined in claim 35, wherein there are at least four deposit parameterscompared against respective individual customer deposit limits, with thefour deposit parameters comprising a number of monetary items in thedeposit information with the individual customer limit being a customernumber of monetary items limit, a total monetary amount of a deposit inthe deposit information with the individual customer limit being acustomer total monetary amount deposit limit, a monetary amount of amonetary item in the deposit information with the individual customerlimit being a customer monetary item amount limit, and a number ofdeposits and the individual customer limit is a number of depositslimit.
 43. The method as defined in claim 35, wherein the system forreceiving deposit information receives deposit information for aplurality of different deposit transactions, each one of the pluralityincluding a deposit account designation to a different bank of firstdeposit; and wherein the sending step sends at least some of the depositinformation for each different one of a plurality of the deposittransactions to a respective different one of the banks of firstdeposit.
 44. The method as defined in claim 35, further comprisingdetermining if the maker bank requires a hard copy of the check; and ifit does, sending check image data to the print site for printing a hardcopy of the check and sending the hard copy of the check directly orindirectly to the maker bank.
 45. The method as defined in claim 35,further comprising component for: determining if the maker bank requiresa hard copy of the check; if it does, printing a copy of the check fromthe check image data and forwarding directly or indirectly the printedcheck to the maker bank.
 46. The method as defined in claim 35, furthercomprising determining if the bank of first deposit is a maker bank forthe check; and if it is the maker bank, then determining if the makerbank requires a hard copy of the check; if the maker bank does require ahard copy of the check, then causing a copy of the check to be printed;and if the maker bank does not require a hard copy of the check, thensending the check image data directly or indirectly to the maker bank.47. The method as defined in claim 35, further comprising receivingreturn check image data for a return check coupled with a reference keyfor an original deposit transaction; and sending the return check imagedata with the reference key directly or indirectly to the maker bank forre-presentment.
 48. The method as defined in claim 35, furthercomprising determining if a re-presentment of a returned check requiresa hard copy of the return check or if the check data image is acceptablefor the re-presentment; and if the check image is acceptable, obtaininga reference key associated with an original deposit transaction; andsending directly or indirectly the check image data and the referencekey to the maker bank.
 49. The method as defined in claim 35, furthercomprising a system with a plurality of different remote sites, with thefollowing steps being performed at each of a plurality of the remotesites: obtaining deposit data for one or more original checks;converting data for each of the one or more original checks intoelectronic check data; creating original check image data for each ofthe one or more original checks; creating endorsed and/or voided checkimage data for each of a plurality of the one or more original checks;electronically associating the deposit data, the electronic check dataand the original check image data and the endorsed and/or voided checkimage data; and transmitting the electronic check data and the originalcheck image data and/or the endorsed and/or voided check image to thecentral system.
 50. The method as defined in claim 49, furthercomprising: determining if endorsement information at one of the remotesites is up-to-date; and if the endorsement information at the remotesite is not up-to-date, then downloading updated endorsement formationfrom the central system.
 51. The method as defined in claim 35, furthercomprising the central system sending endorsement information to theremote site to be used to add an endorsement.